Tips to handle shipments to Brazil as smooth as butter!
Hey Everyone,
A lot is discussed about the complexities of Brazilian Customs and Exports to Brazil. The regulations for Customs Clearance in Brazil can be complex, but there are many ways that we can prevent headaches. At a recent conference with fellow forwarders, a few came up to me with questions about freighted bills and manifests into Brazilian Customs. Here are a three tips you need to know before so you can start to handle cargo to Brazil with no headaches whatsoever:
- All Bills have the freight manifested
Brazilian Law dictates that a Bill of Lading (BL) and/or an Air Waybill (AWB) with cargo to Brazil must show the freight amount. This means that you, a freight forwarder, need to use a House Bill in order to show the freight amount sold to your client. This is mandatory in Brazil because customs takes the freight amount in consideration when calculating import taxes, as they are based on the CIF value. So even if the importer negotiated FOB cargo, the customs system will add the freight shown on the BL or AWB as base for the calculation of taxes. Some other charges on the freight are also added, such as fuel add-ons, bunker charges, etc. To avoid headaches, you can consignee these shipments to SAVILOG and we will be more than happy to help you!
- Foreign forwarder’s pre-registry on Brazilian Customs
If you’re a non-Brazilian forwarder that is handling sea cargo to Brazil and you’ll use a House BIll of Lading, you will need to pre-register your company with our customs before your cargo’s departure. This is only done once and it must be done through a local Brazilian representative. This representation does not mean that you’ll always have to choose this specific representative that registered you in future shipments, but in fact this representative will just act just as a language and cultural barrier facicilator for this pre-registry.. This registry will generate a unique number assigned to your company and it will be used on the cargo’s manifest on all future shipments handled by you. Shipping cargo to Brazil without this registry can lead to the cargo being held by Customs until the registry is finished – which can lead up to high storage costs, as well as higher import taxes in some ports. At SAVILOG we can help you to file for your company’s registry with customs, so you can enjoy hassle-free shipments to Brazil!
- Cargo Manifests
Like many countries, Brazilian Law dictates that all cargo arriving into Brazil must be manifested on Customs’ systems before cargo arrival. This means that the Brazilian Forwarder receiving the cargo must input all details pertinent to the House Bill of Lading (HBL) or House Air Waybill (HAWB) onto the system at least 48 hours before the cargo arrival for sea shipments, and 4 hours before the cargo arrival for air shipments. Failure to accurately submit these manifests may lead to fines of BRL 5000 per bill (roughly USD 1000). For short transit time routes, this is even more critical, as the proper documentation must be approved by the importer and the Brazilian forwarder before the cargo leaves the point of origin. Amendments in these manifests may also lead to fines, and carriers and forwarders in Brazil will request a Letter Of Indemnity (LOI) before proceeding with any amendments. Of course, you can count on SAVILOG to help you manifest your shipments to Brazil with no hassle!
Happy Shipping!